Business Enquirer Issue 117 | Shoprite | September 2023

CUSTOMER-FOCUSSED INNOVATION SEES SALES SOAR IN SOUTH AFRICA SHOPRITE

With more than 3,150 stores across 10 countries, Shoprite Holdings is the group behind some of Africa’s most loved customer facing stores, such as Shoprite, Checkers, USave, and House and Home. Additionally, it has expanded into ecommerce and B2B and customerfacing logistic services.

Driven by a customer-first approach, Shoprite Holdings has well established its vision of providing affordable and accessible products to customers from all walks of life.

In March 2023, the business reported yet another successful period of growth (26 weeks ending 1st January 2023), with group sale of merchandise increasing by 16.8% to R106.3 billion, and the creation of nearly 4,000 jobs across its supermarket operations.

Founded on its purpose to uplift lives every day by pioneering access to the most affordable goods and services, creating economic opportunity and protecting the planet, the business has highlighted its three-point strategic plan:

1.A Smarter Shoprite - A truly customerfirst culture, developing future-fit channels, and enabling precision retailing;

2.Closing the Gap in Key SegmentsTrusted, profitable private labels, growing its share in premium and fresh food, and establishing a stronger franchise offer;

3.Winning in the Long Term - By unlocking alternative revenue, future-fit talent, and leverage platform advantage.

SHOPRITE PROJECT DIRECTED BY: GLEN NEWTON ARTICLE WRITTEN BY: LAURA WATLING

Established in 1979 in South Africa, Shoprite Holdings has grown to become the largest supermarket retailer in Africa.

In an African first, 62 butchery managers and trainers – 13 of which are women –joined the global club of certified Master Butchers following graduation from the Shoprite Group’s Master Meat Artisan Programme.

CUSTOMER

-FOCUSSED

INNOVATION SEES SALES SOAR IN SOUTH AFRICA

Adding Value: To Its Customers

With the cost of living crisis affecting nations worldwide, South Africa is no exception. In 2022, inflation rose from 2% to a high of 7.8%, and saw a loaf of bread cost 20% more than it did in 2021.

Putting its customers first, Smartrite Holdings strives to manage costs in benefit of its customers.

One way in which it achieves this is by utilising its centralised distribution network, long-standing supplier relationships and bulk-buying power to provide products at the lowest prices.

In addition, it subsidises essential items like Shoprite’s in-house loaf of brown bread, sanitary pads, and wholesome meals at Shoprite’s deli counters.

Adding Value: Through Environmental Stewardship

Shoprite Holding’s support to customers expands far beyond what it can do on the shop floor.

The business acknowledges its role in reducing its environmental impact, with it affecting not only its business, but also the communities in which it operates. With this in mind it has extended its sustainability practices across its brands, such as Checkers’ ‘Better for our planet’ campaign.

The initiative saw Shoprite Holdings implement AI to identify customer requirements, therefore reducing over-ordering, unnecessary waste, and increased carbon footprint. On the other side of this, it donated surplus food to more than 500 charities, supporting 46 million meals.

The project also saw the collection of over 3.6 million litres of used cooking oil, which was recycled into industrial products. In addition, the ‘Better for our planet’ initiative saw Checkers reduce its water use intensity by 7.5%, seeing it named as South Africa’s highest-ranked retailer for managing water resources properly by the Carbon Disclosure Programme.

Through its logistics network, Shoprite Holdings uses a fleet of over 1000 solar powered trucks, contributing to the generation of 1.4 million kWh and saving 3.3 million kg of carbon emissions per year. As well as this, its LED lamp replacement project has resulted in an electricity consumption reduction of nearly 4000 million kWh.

Adding Value: Through Innovation

Ensuring the future of the business, Shoprite Holdings has launched its technology and innovation hub, ShopriteX.

ShopriteX utilises data science, technology, media, digital commerce and personalisation to identify and support

New rooftop solar photovoltaic (PV) installations at various sites throughout the country are adding to the Shoprite Group’s growing network of solar-powered and renewable electricity installations in South Africa.

investment into the future-proofing of the business. The ultimate aim, of course, is to ensure the continued delivery of value to its customers by combining the strengths of physical retail and digital customer experiences.

“Shoprite to the power of X represents the exponential growth opportunity when you combine the best of data, tech and talent with the scale of the Shoprite Group. We are solving real retail challenges with the country’s brightest minds,” said Neil Schreuder, Chief of Strategy and Innovation for the Shoprite Group, on its website.

The business has made notable strides in achieving its goal of creating a smarter Shoprite whilst remaining resolute in its commitment to being Africa’s most accessible, affordable and innovative retailer.

One initiative it has implemented is Xtra Savings, South Africa’s fastestgrowing rewards programme which has been rolled out at Shoprite and Checkers.

With millions of completely paperless sign-ups, Xtra Savings provides ShopriteX with the data that supports personalisation for its customers.

Meanwhile, Checkers Sixty60 is an innovative, award-winning 60-minute grocery delivery service which has been developed and delivered by ShopriteX, using the best of digital to deliver a customer-centric service to its customers' doorsteps.

Adding Value: Through Opportunity

In its 2022 Sustainability Report, Shoprite Holding’s highlighted that its employees are an integral part of the business meeting its customer needs and reaching its customer-centric goals.

With that in mind, it has developed its People Plan which includes detailed work tracks in specific areas to further enhance its customer-first culture and develop future-fit talent.

The Shoprite Group is the first South African retailer to pilot a heavy-duty electric truck as part of its fleet, and 28-year-old Robin Jooste from Colorado Park, Mitchells Plain has been selected to drive it.

The business employs over 145,000 people across Africa, of which 64.6% are women (an increase by 0.6% between ‘21 and ‘22.) Now, amongst those are Africa’s first women Master Butchers.

In an African first, 62 butchery managers and trainers, 13 of which are women, joined the global club of certified Master Butchers following graduation from the Shoprite Group’s Master Meat Artisan Programme.

Shoprite Holdings is the only company in Africa to provide what is considered a highly specialised butchery learning programme, underwritten by the UK’s Institute of Meat.

The course provides participants with extensive knowledge in meat processing practices from farm to fork.

It is anticipated that approximately 150 more employees will be enrolled on to the programme over the next five years. Not only will this boost employee development opportunities across the business, it will also support putting the retailer, and South Africa, on the map as world-class specialists in butchery operational practices.

www.shoprite.co.za